Harmer St, Gravesend
Funded
Total Fund
PLEASE NOTE: This is a leveraged investment that uses debt secured via a first charge on the development. As such there is a risk that in the event that the debt is not repaid, that some of your capital is not repaid.
*Shares with a preferred minimum return are preferential to all other shares up to the minimum return level. This means that the minimum return (i.e. 16%/18% p.a.) will be paid out first from profits before any other distribution to other share holders. With this investment Class B and Class C shares are deemed as equal in terms of priority and are both preferential to Ordinary Class A Shares.
Property name: Harmer Street
Address: Gravesend
Property type: Flat - Conversion
Property age: 1900 - 1949
Market type: Young professionals
Description: These two quite distinct commercial buildings, currently used as offices (Harmer Street building), a snooker hall and a car workshop (Mercer Crescent building) are to be converted into 39 residential apartments under existing planning permissions. Read more.
Situated on the banks of the River Thames, Gravesend is a town with a surprising history, including the fact that it is the resting place of Princess Pocahontas. The town is a mix of mainly Victorian and Edwardian buildings with many linked to it's former role on the River Thames - it still has two operational piers.
Harmer Street is said to have been designed by an architect from Bath and the adopted style is plain to see. At the end of the street is an historic clock tower which has recently been restored.
The town is well connected with good rail links to Stratford International in 12 minutes and Central London in 24 minutes. Eurostar trains from nearby Ebbsfleet International Station reach Paris in just over two hours and Brussels in one and a half.
The road network is also very good with the A2 and the M25 in easy reach.
The town also has good shopping and leisure facilities and it also benefits from the nearby Bluewater Shopping Centre.
*Local Property Market analysis uses House Price Index data from The Land Registry. The commentary is opinion only and should not be taken as fact.
| Purchase Price | £1,700,000 |
| Stamp Duty | £115,612 |
| Legal & Professional Fees | £59,986 |
| Development Costs | £2,800,000 |
| Contingency Allowance | £127,402 |
| CrowdLords Fees* | £16,000 |
| Total Investment | £4,819,000 |
| Less Stretch Senior Debt Finance | -£4,600,000 |
| Remaining Funds Required | £219,000 |
| Developer Equity | £59,000 |
| Crowd Investors Class B Shares | Up to £120,000 |
| Crowd Investors Class C Shares | At least £40,000 |
* CrowdLords Success Fee is equal to 10% of the funds raised. This fee is paid by the SPV and has no negative effect on the projected returns quoted.
| Gross Development Value* | £8,100,000 |
| Market Growth** | £0 |
| Gross Development Profits | £3,230,000 |
| Vendor Final Payment | -£800,000 |
| Debt Finance Costs | -£792,642 |
| Sales Costs | -£161,250 |
| CL Growth Fees**** | -£55,785 |
| Gross Profit | £1,471,323 |
| Corporation Tax | -£279,551 |
| Projected Net Profit | £1,191,772 |
| Share of profits payable to Class B Shares*** | 5.03% |
| Projected Dividend for Class B Shares | £60,000 |
| Projected Total Return for Class B Shares*** | 50% |
| Share of profits payable to Class C Shares*** | 1.37% |
| Projected Dividend for Class C Shares | £16,333 |
| Projected Total Return for Class C Shares*** | 40.8% |
*The stated Gross Development Value is based on the current sales values according to local agents
**Market Growth has not been considered as it normal practice
***B Class Shares are only available for investments over £20,000
****CrowdLords Growth Fee is 3.65% of Net Profits before tax. These have been taken into account when projecting returns for investors
| Investment Period | 18 Months |
| Projected Total Return | 40.8% |
| Projected Total Annualised Return | 27.2% |
| CrowdLords Risk Rating | |
| Market Sensitivity | B |
| Time Sensitivity | B |
| Cost Sensitivity | B |
| Preferred Return | C |
| Experience | A |
| Overall | B |
*The Development Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the Developer. It is different to the BTL Risk Reward Profile and they should not be compared directly. Investors should make their own assessment of Risk & Reward before investing
We include a CrowdLords Risk Rating to illustrate where the investment lies on our Risk Return Profile. Where risks are higher it is usual to expect a higher return and this is designed to aid quick comparisons only. It is our opinion only and should not be taken as a recommendation. You should judge the Risk for yourself using the information provided and your own investigations to form your own opinion.
We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk. The five areas we grade are:
ALP Property Services is an established and experienced firm of house builders specialising in residential developments.
Based in Kent but operating throughout the South East, they have significant experience in working with both the private housing market and Housing Associations, to create high quality homes with great attention to detail within the build.
Driven by a strong leadership team, the company retains a professional and skilled workforce.
The ethos for quality building has seen the company grow from strength to strength and tackle increasingly challenging and exciting projects.
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